Industry First: Providing Reliable Primary Data for Scope 3 (Category 5/Waste Treatment) for Customers

DOWA Eco-System Co., Ltd. (Location: Same as above, Capital: 1 billion yen, President: Yasuharu Yanai, hereinafter referred to as DOWA Eco-System) will launch a Carbon Footprint (CFP)*1 reporting service starting June 2026, which provides reliable primary data on greenhouse gas (GHG) emissions associated with waste treatment for customers who entrust their waste treatment to our group. This service calculates and reports GHG emissions for each customer using actual data from the treatment process, addressing Scope 3*3 (Category 5/Waste Treatment), which is gaining importance in corporate disclosure based on Sustainability Disclosure Standards*2 (SSBJ Standards). To provide this service, DOWA Eco-System has independently developed a CFP calculation system for waste treatment processes and obtained third-party validation on March 18, 2026. This customer-specific CFP reporting service using a system with third-party validation is the first in the waste treatment industry in Japan*4.

*1 A value converted into CO₂ emissions representing greenhouse gas emissions generated throughout the entire lifecycle of a product or service, from raw material procurement to use, disposal, and recycling.

*2 A sustainability information disclosure standard for Japanese companies formulated by the Sustainability Standards Board of Japan (SSBJ). It is designed to ensure consistency with the International Sustainability Standards Board (ISSB) international standards while considering Japanese legal systems and corporate practices, and requires disclosure of sustainability-related risks and opportunities, including climate change, from the perspective of financial impact.

*3 Greenhouse gas emissions associated with corporate activities are classified into Scope 1-3 by emission source. Scope 1 and 2 refer to emissions generated directly by the company or through energy use, while Scope 3 covers emissions generated throughout the supply chain, such as raw material procurement, logistics, and waste treatment. Scope 3 is further divided into 15 categories, and its understanding and disclosure are becoming increasingly important from the perspective of evaluating the sustainability of corporate activities.

*4 Our research (as of March 26, 2026)

Background

Based on the SSBJ Standards published in March 2025, companies listed on the Tokyo Stock Exchange Prime Market will be gradually required to disclose climate change-related information, including Scope 1-3, from the fiscal year ending March 2027 onwards. While traditional Scope 3 calculations have generally relied on estimations using secondary data, such as emission factors published by the Ministry of the Environment, the SSBJ Standards recommend disclosure using primary data directly provided by suppliers that more accurately reflects the actual state of corporate activities.

Currently, in the manufacturing sector, product CFP is actively calculated, and the provision of primary data is expanding. On the other hand, in the waste treatment sector, the provision of primary data has lagged compared to other industries due to the complexity of waste types and their transportation, the wide range of processes from collection to final disposal, and insufficient development of data infrastructure.

Overview of CFP Calculation System

The waste treatment CFP calculation system independently developed by DOWA Eco-System obtains activity data from its waste management database and procurement/operation management database, and calculates and aggregates GHG emissions per customer and process using emission factors for waste, transportation, utilities, and auxiliary materials provided by a reliable database.

For waste treatment at Eco-System Chiba, a waste treatment facility of our group, we have obtained third-party validation from Intertek Certification Japan Ltd. (Minato-ku, Tokyo)...